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05/05/25
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Silver Prices Rise Amid US-China Trade Uncertainties and Dollar Weakness
Silver prices have experienced a slight uptick as ongoing uncertainties surrounding US-China trade negotiations boost demand for safe-haven assets. Current trading sees silver positioned around $32.10 during the Asian market hours, attempting to recover from a four-day decline. The renewed interest in silver is linked to the ongoing discourse regarding trade between the two economic powerhouses. Though US President Donald Trump has confirmed that negotiations are active, he also stated there are no scheduled talks with Chinese President Xi Jinping this week.
The weakening of the US Dollar is contributing to silver’s appeal, especially for international investors seeking dollar-denominated assets. Recent developments have placed the Greenback under pressure, influenced by expanding trade tensions, including Trump’s announcement of a significant tariff on foreign-produced films. A depreciating dollar typically makes silver more attractive to buyers using other currencies.
Nevertheless, the prospects for silver’s industrial demand are facing headwinds due to declining global economic indicators. In the first quarter of the year, the US economy unexpectedly shrank by 0.3%, marking its first contraction in three years. Similarly, China’s manufacturing sector is struggling, seen in the latest National Bureau of Statistics (NBS) manufacturing PMI, which fell to a 16-month low amid the steepest drop in export orders since 2022.
Attention now turns to upcoming updates from the US Federal Reserve, where it is anticipated that interest rates will remain steady despite pressure from the Trump administration for a cut. Additionally, investors are keenly awaiting the US ISM Services PMI report scheduled for release, which will provide further insight into the economic landscape and possibly impact future market movements.
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